Just a day after announcing that the US would charge a 20% security fee for ships transiting the Strait of Hormuz, President Donald Trump reversed his decision under pressure from US allies. 

On Monday, Trump asserted that the Strait would remain open to non-Iranian traffic, and the US would protect shipping. “The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’” he wrote. “But as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World. The process and formation will begin immediately.”

By Tuesday, Trump said he had received pressure from allied leaders to remove the fee and decided on a different method for receiving payment for securing the Strait. “Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” he posted to Truth Social on Tuesday. “Those Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future.”

Control over the Strait of Hormuz has emerged as the central issue in the conflict. Last month, the US and Iran signed a Memorandum of Understanding that gave Tehran control over shipping through the waterway but required the lifting of all fees for 60 days. 

However, the US and Oman violated the MOU by attempting to establish a shipping lane through the Strait outside of Iran’s control. Tehran responded to the violation by attacking vessels attempting to use the alternative shipping lane. The US retaliated with strikes on Iran, reigniting the war. 

US officials have previously stated that Iran cannot be allowed to charge a fee in the Strait of Hormuz because it would set a dangerous precedent for shipping lanes worldwide.